Why Use the Assignment of Mortgage Payments System?
Not every real estate strategy works during every type of economy. 5 years ago, when you could get a loan by fogging a mirror, strategies like short sales or the assignment of mortgage payments system would not have worked very well. In this economy, relying on bank financing as an exit strategy doesn’t work very well either. As economies and markets change, new opportunities arise. The bigger the change, the bigger the opportunities. Those who are able to solve the problems of others profit greatly in times of uncertainty. Are you ready to take advantage of this new real estate market by implementing the assignment of mortgage payments system?
Assignment of Mortgage Payments System | Sellers’ Problems
Here are some of the problems facing a seller in this economy:
Home values are down 32% from 2002 price levels. In fact, the real estate market lost almost $7 Trillion in equity since the peak of the housing market! Distressed housing sales are too common and are continuing to drop the value of houses. If we continue to sell 5.5 million houses per year in this country, we won’t sell all distressed properties until 2014. Unemployment is high, increasing the supply of distressed houses even more. Traditional means of selling homes, like using a Realtor to find a buyer with conventional bank financing, just doesn’t work in this economy. Commissions, fees, and closing costs are supposed to come out of the profits of a sale, and in today’s real estate market, there just aren’t any profits being made to pay these costs.
Chances are, if you’re selling a house that you purchased during the real estate bubble, then you will have to come out of pocket to sell the house. Either you owe more than the property is worth or have no equity and will have to pay for the closing costs. If you owe $150,000 on a house and sell it for exactly that amount, you’ll still have to come out of pocket around $15,000 to pay all Realtor, title, and other closing costs.
Assignment of Mortgage Payments System | Buyers’ Problems
New lending is down 43%. Banks are relying on W2 jobs as a main criteria for creating loans. This eliminates small business owners, doctors, attorneys, and other business professionals who don’t work for a paycheck. George Ross from Donald Trumps NBC TV show ‘The Apprentice’ told me the following story that illustrates how intellectually challenged the banks lending processes are now:
I have this associate who wants to buy a lot for $5M. It’s really a great deal. He has $20M in the bank, owns multiple properties free and clear, a near perfect credit score, and is willing to put down $4M. All he’s looking for is a $1M loan from the bank. The bank denies him. We call for an explanation. They tell me that ‘no one in the lending industry gets fired for denying loans; only for approving loans that end up in default. I don’t want to end up like 20% of the population who can’t get a job.’ I wouldn’t use a real estate exit strategy that relies upon conventional bank financing any time soon.
I ran into another similar situation with a multi-millionaire who had a perfect credit score, 25% down payments, other properties owned free and clear, but they wouldn’t loan to him because he didn’t have a paycheck coming in every week. The banks started the problem by lending to everyone 5 years ago and are continuing the problem by not lending to anyone now. Relying on banks will end real estate careers.
Assignment of Mortgage Payments System | Investors’ Problems
My short sales business was thriving between 2004 and 2007, having successfully closed over 1,000 deals. Then, suddenly, the business grinded to a halt. In Texas, we can negotiate a discount on a short sale, but it’s not as big of a discount as the rest of the country and you generally have to rely on selling directly to an end buyer. Obviously, the problem became reselling the house. My buyers for these discounted properties couldn’t get lending anymore. Negotiating short sales does you no good if you can’t resell them. Fix and flippers ran into the same problem. There just weren’t many options left for real estate investors in this market.
Assignment of Mortgage Payments System | The solution
Assignment of Mortgage Payments System
As mentioned earlier, those who can provide solutions to problems can become multi-millionaires in tough markets. I created the assignment of mortgage payments system as a solution to the difficulties of today’s real estate problems. By combining proven, successful real estate strategies, such as wholesaling, subject-to, and owner financing, I created a way to sell ‘unsellable’ homes to ‘unloanable’ buyers without discounting the price of real estate.
The benefit of the Assignment of Mortgage Payments System to the sellers is now, through the assignment of mortgage payments system, they can sell a house with no equity without coming out of pocket, making repairs, and affecting their credit score in a negative manner.
The benefits of the Assignment of Mortgage Payments System to buyers is that they are able to purchase a house without conventional bank financing. For most motivated home buyers, the value of having a loan is greater than the value of having a home. The assignment of mortgage payments system provides them with an opportunity to obtain both a home and a loan in a market where they otherwise could not obtain either.
The benefit of the Assignment of Mortgage Payments System to the investors is that this assignment of mortgage payments system is simple to learn and execute, has a great amount of supply and demand, requires little to no financial investment from the investor, doesn’t rely on the investor’s credit, doesn’t require conventional financing, hard money loans, private money loans, repairs, fees, commissions, etc… It’s a process that is highly scaleable with very little risk.
This is the easiest time to become a millionaire in America that I have ever seen by far! Anyone has the chance to become a millionaire in America, more right now than ever before. You have to have the knowledge to solve problems and the courage to take action. Learning and understanding the Assignment of Mortgage Payments System is a step in the right direction!
Image: digitalart / FreeDigitalPhotos.net
